On Friday, Southwest and Archer Aviation, manufacturer of the Midnight electric vertical takeoff and landing (eVTOL) air taxi, signed a memorandum of understanding (MOU) to develop a network of routes connecting Southwest terminals at California airports.

The airline is the state’s largest air carrier and owns key hubs in Los Angeles, San Diego, Sacramento, and the San Francisco Bay Area, where Archer recently announced plans to construct eVOL infrastructure, such as takeoff and landing vertiports, at five airports.

Archer’s flagship aircraft, which takes off and lands like a helicopter but flies on fixed wings like an airplane, is designed for a pilot to fly as many as four passengers on 20 to 50 sm (17 to 43 nm) air taxi routes, cruising at up to 150 mph (130 knots).

As soon as next year, it will begin ferrying customers to and from airports at a price the manufacturer claims will be cost-competitive with ground-based rideshare services such as Uber or Lyft.

“Integrating Archer’s electric aircraft into the travel journey potentially gives us an innovative opportunity to enhance the experience of flying Southwest,” said Paul Cullen, vice president of real estate for the airline.

Cullen also left the door open for an expansion of Southwest’s air taxi service to locations in other states.

Added Dee Dee Meyers, senior adviser to California Governor Gavin Newson and director of the Governor’s Office of Business and Economic Development: “This initiative is designed to help revolutionize clean transportation with zero-direct emission and affordable options, enhancing the passenger experience, and supporting California’s climate action goals.”

The agreement with Southwest builds on Archer’s existing relationship with United Airlines, which in 2021 agreed to purchase 100 Midnight air taxis for an estimated $1 billion. Under that agreement, Archer will develop a software platform, mobile booking platform, and vertiport integration technology for a commercial service operated by United.

Delta Air Lines, the third major U.S. carrier with plans to launch an air taxi network, is working with Archer competitor Joby Aviation.

In addition, Archer in June signed a deal with Signature Aviation that would give it access to more than 200 FBOs, including those at New York Liberty International Airport (KEWR), Chicago O’Hare International Airport (KORD), and other airports the company intends to serve. The manufacturer also has an agreement with FBO network operator Atlantic Aviation to electrify Atlantic terminals in New York, Los Angeles, Miami, and San Francisco.

“With Archer’s Midnight aircraft, passengers will be able to fly above traffic to get to the airport faster,” said Nikhil Goel, chief commercial officer of Archer. “Southwest customers could someday complete door-to-door trips like Santa Monica [California] to Napa in less than three hours.”

Archer and Southwest will begin by developing a concept of operations for Midnight out of Southwest terminals, partnering with airline employees and union groups such as the Southwest Airlines Pilot Association (SWAPA).

The companies “plan to collaborate over the next few years as eVTOLs take flight,” which does not commit them to a 2025 or 2026 launch. Archer, Joby, and other eVTOL manufacturers such as Beta Technologies and Overair intend to enter commercial service during that time frame.

Adding Southwest as a partner could be key for Archer when considering the activities of its competitor overseas.

Both firms plan to fly in the United Arab Emirates, including the cities of Abu Dhabi and Dubai. In February, however, Joby signed what it describes as an exclusive six-year deal with Dubai’s Road and Transport Authority, giving it the sole right to operate an air taxi service in the emirate. Archer CEO Adam Goldstein has disputed the exclusivity of the agreement, saying it will have no impact on the company’s plans.

That dynamic has not yet played out in the U.S.—both companies plan to fly in New York, for example. But if Joby intends to replicate the strategy of gaining an edge over competitors with exclusive deals, partnerships such as that with Southwest become more important.

Notably, the companies have also butt heads on eVTOL infrastructure. Each is pushing for a different electric aircraft charging system to become the industry standard, similar to how Elon Musk fought for Tesla’s North American Charging Standard to supplant the widely accepted Combined Charging Standard (CCS) for electric ground vehicles (a fight Tesla ultimately would win).

Similarly, Joby wants its Global Electric Aviation Charging System (GEACS) to replace a modified version of the CSS supported by Archer, Beta, and others, which could throw a wrench into their FBO electrification plans.

Among eVTOL manufacturers, Archer and Joby are the closest to being able to fly in the U.S. Each has achieved a full transition flight using a prototype air taxi and expects to begin the critical for-credit phase of FAA certification in the coming months.

In addition, both are qualified to perform eVTOL maintenance and repairs and are in the process of training an initial group of pilots to fly their respective aircraft.

The goal is for those activities to be complete in time for a 2025 launch. Whether Southwest will be a part of that occasion remains to be seen.

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JetSetGo, an Indian marketplace for private jet and helicopter charters that also operates its own fleet, on Friday announced strategic partnerships with Horizon Aircraft, Overair, and Electra.aero to order as many as 280 aircraft, which would value the deal at a whopping $1.3 billion. 

Each of the electric or hybrid-electric aircraft will bring unique capabilities to JetSetGo’s fleet, which comprises five midsize Hawkers and six other aircraft, ranging from large cabin jets to helicopters.

Horizon’s vertical takeoff and landing (VTOL) Cavorite X7 and Electra’s ultra-short takeoff and landing (STOL) nine-seater—both hybrid-electric designs—will be the first to fly JetSetGo routes since they can utilize existing infrastructure, the company said. Overair’s Butterfly electric VTOL (eVTOL) air taxi will follow as Indian cities add the necessary infrastructure, such as charging stations.

The three designs will offer an “optimal mix” for five use cases identified by JetSetGo: airport transfers, regional connectivity, intercity commute, intracity shuttles, and urban air taxis. The company says India—which is plagued by road congestion issues, infrastructure challenges, and aviation emissions—will make an “ideal testbed” for AAM services.

“Our partnership with these three leading innovators will introduce unique technologies like ‘blown lift’ and ‘fan-in-wing’ lift systems, hybrid and electric propulsion, and super-quiet optimal speed tilt rotors to India,” said Kanika Tekriwal, co-founder and CEO of JetSetGo. “We want to lead the transformation of urban and regional connectivity and believe we have the right partners and technologies to make this vision a reality.”

The agreements lock JetSetGo into 150 firm orders—50 from each manufacturer—for a combined $780 million. But all three contracts include the option for it to acquire more aircraft.

Horizon, which announced its agreement earlier this week, will ship an initial batch of 50 Cavorite X7s to JetSetGo for $250 million. The firm has the option to acquire 50 more, which would double that deal’s value. Overair and Electra did not specify the initial order value or  number of options JetSetGo could acquire.

Horizon founder and CEO Brandon Robinson characterizes the company’s X7 as a “normal” aircraft with eVTOL capabilities, rather than an eVTOL with features of a traditional airplane. It uses a patented “fan-in-wing” configuration, similar to the Lilium Jet: 14 electric ducted fans are embedded in the wing to provide lift. During cruise, movable surfaces cover the fans.

The X7’s mix of features from traditional and electric aircraft make it something of an amalgamation. It can take off vertically or conventionally from the runway, for example, and a gas-powered range extender can charge its batteries during cruise. The air taxi won’t reduce emissions as much as all-electric designs, but Horizon says it will offer greater range, speed, and payload.

“This evolution will serve as a catalyst to accelerate our growth by providing the resources to continue the development and testing of our practical, real-world-use hybrid eVTOL, the Cavorite X7,” said Robinson.

Like the X7, Overair’s Butterfly offers some unique capabilities. The eVTOL deploys two technologies the firm says have never been integrated on an eVTOL design: optimum speed tilt rotor (OSTR) and individual blade control (IBC).

OSTR, which varies propeller revolutions per minute during vertical, forward, and transition flight, acts as a power saver, reducing energy demand in hover by as much as 60 percent. IBC, which is being researched by the U.S. Navy, limits the vibration of each blade to reduce propeller load and enable safer, smoother flights.

The combination of OSTR and IBC produces efficient, quiet propulsion through nearly any weather, temperature, or altitude, Overair says. Butterfly also features four oversized rotors, large cabin, and payload of about 1,100 pounds—enough for five passengers and their luggage. The company says it is ideal for passenger, medical, cargo, and military applications.

“Butterfly will provide a safe, quiet, and efficient mobility solution for urban and regional transport across the broadest range of weather conditions and geographic environments,”  said Valerie Manning, chief commercial officer at Overair. “In addition, the associated advanced air mobility ecosystem will create a multitude of jobs and fuel economic growth.”

As the lone all-electric VTOL manufacturer included in JetSetGo’s agreements, Overair will also support its new customer with infrastructure advisement, pilot training, infrastructure and software integration, operational guidance, and vertiport software integration.

Electra’s nine-seat design is also all-electric, but it won’t require VTOL infrastructure to get flying. The eSTOL design needs just 150 feet of runway for takeoff—that’s enabled through a unique technology called blown-lift, which allows the aircraft to take off at speeds as slow as a car driving through a residential neighborhood.

The eSTOL has a range of 500 nm and can carry up to 2,500 pounds of cargo. Compared to vertical takeoff alternatives, Electra claims the model offers more than twice the payload, 10 times the range, and 70 percent lower operating costs.

“Our aircraft’s unique ability to operate from soccer field-sized spaces, with the capacity to transport nine passengers up to 500 miles enables JetSetGo to identify new routes using eSTOL capability and deliver sustainable, affordable air connections to India’s communities previously underserved by flight,” said Marc Ausman, chief product officer of Electra.

Electra’s design was part of another massive hybrid-electric aircraft order from Dallas-based regional air carrier JSX. In December, the semiprivate operator signed letters of intent to acquire as many as 332 aircraft, including 32 firm orders and 50 options from Electra. JSX will also purchase Aura Aero’s Era and Heart Aerospace’s ES-30.

Several other American operators, including Surf Air Mobility and Bristow Group, have agreed to order or retrofit hybrid-electric designs as they seek to introduce new, sustainable, and potentially more cost-effective aircraft to their routes. In India, meanwhile, travel conglomerate InterGlobe in November agreed to purchase as many as 200 Midnight air taxis from Archer Aviation.

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Editor’s Note: This article originally appeared on FreightWaves.com.

Atlas Air said Wednesday it is operating two Boeing 747-400 freighters for FedEx Express full-time under a new long-term contract. The deal is in addition to the all-cargo carrier’s existing multi-year peak-season contract that provides FedEx with a minimum of five aircraft during the fourth quarter.

The Atlas lease, which includes crew and maintenance, went into effect Sept. 1. The aircraft will be used on routes between Asia, Europe and FedEx’s hub in Memphis, Tennessee, Robert Kirchner, the union chief for Atlas Air pilots, told FreightWaves last week.

FedEx is adding supplemental airlift to keep up with growing international e-commerce volumes in its express network. During its fiscal first quarter ended Aug. 31, FedEx’s international package revenue increased 25.6 percent to $1.3 billion year-over-year, although airfreight revenue fell from $75 million to $47 million because of extraordinary charter activity FedEx provided at the start of the COVID pandemic in 2020 to delivery personal protective equipment and other medical supplies.

Kirchner said the service has already experienced delays because of crew shortages at Atlas Air resulting from disaffected pilots leaving the company. Neither company has responded to queries about the new arrangement or specified it’s exact duration.

Atlas Air pilots have vented their displeasure with the company for not accommodating demands on compensation, scheduling, and working conditions during collective bargaining, culminating in a binding contract set through arbitration that union members have criticized. Under the new deal, pilot pay scales would increase an average of 30 percent, but workers say the increase is off a low base and that the contract fails in other regards.

“We are pleased to grow our long-term relationship with FedEx. This agreement reflects the continued strong demand for air freight capacity, particularly in the express and e-commerce markets,” said John Dietrich, Atlas Air Worldwide Holdings president and CEO, in a statement.

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Editor’s Note: This article originally appeared on FreightWaves.com.

Atlas Air will continue to fly 20 large freighters for DHL Express after the express delivery company extended an existing contract, the companies announced Tuesday.

The arrangement ensures DHL Express has continued access to outsourced airlift to support its fast-growing express business that is increasingly driven by e-commerce. The length of wet leases was not disclosed.

Atlas is currently operating four types of aircraft for DHL Express, all in a cargo configuration:

• Six Boeing 747-8
• Two Boeing 747-400
• Eight Boeing 777-200
• Four Boeing 767-300

The aircraft are operated globally by Atlas Air Worldwide Holdings subsidiaries Atlas Air, Polar Air Cargo and Southern Air. Polar Air Cargo is a 13-year-old joint venture between Atlas and DHL in which DHL holds a 49 percent equity interest, including a 25 percent voting share. The strategic arrangement provides DHL Express guaranteed capacity on key trade lanes while Atlas gets a predictable, long-term revenue stream.

“As this agreement indicates, Atlas is capitalizing on the strong global airfreight market conditions as we deepen relationships with our customers,” Atlas Air CEO John Dietrich said.

Last week, Atlas Air finalized a five-year labor contract with its pilots.

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